Page 230 - SAIT Compendium 2016 Volume1

s 29B INCOME TAX ACT 58 OF 1962 s 30
(c) a contractual right or obligation the value of which is determined directly or indirectly with reference to—
(i) an instrument contemplated in paragraph (a); (ii) an interest rate agreement contemplated in
paragraph (b); or
(iii) any speci ed rate of interest;
(d) trading stock; or
(e) a policy of reinsurance.
(3) Where an asset is deemed to have been disposed of by an insurer as contemplated in subsection (2) on the date contemplated in that subsection—
(a) that asset must be deemed to have been so disposed of
on that date for an amount received or accrued equal
to the market value of the asset on that date; and
(b) that insurer must be deemed to have immediately reacquired that asset at an expenditure equal to the market value contemplated in paragraph (a), which expenditure must be deemed to be an amount of expenditure actually incurred for the purposes of
paragraph 20 (1) (a) of the Eighth Schedule.
(4) Where an asset is deemed to have been disposed of by an insurer as contemplated in subsection (2) and that asset, in the hands of that insurer, constitutes an asset as de ned in paragraph 1 of the Eighth Schedule, that disposal must not be taken into account for the purposes of
determining the amount of any allowance or deduction—
(a) to which that insurer may be entitled in respect of that
asset; or
(b) that is to be recovered or recouped by or included in
the income of that insurer in respect of that asset.
(5) (a) In addition to any inclusion in any aggregate capital gain or aggregate capital loss of the policyholder funds of an insurer, that insurer must, in respect of each of those policyholder funds, include in the aggregate capital gain or aggregate capital loss of each of those funds for the realisation year and each of the three years of assessment following that realisation year an amount equal to 18,75 per
cent of an amount determined in terms of paragraph (b). (b) The amount to be determined for the purposes of paragraph (a) is an amount equal to the aggregate of all capital gains and capital losses determined in respect of the disposal of any asset as contemplated in subsection
(2).
[Para. (b) substituted by s. 78 (1) (c) of Act 31 of 2013 – substitution deemed to have come into operation on 29 February 2012.]
(c) Where a person ceases to conduct the business of an insurer prior to the expiration of the three years of assessment contemplated in paragraph (a), any amount determined in terms of paragraph (b) must, to the extent that the amount has not been included as contemplated in paragraph (a), be so included in the year of assessment during which the person ceases to conduct the business of an insurer.
[Para. (c) added by s. 78 (1) (d) of Act 31 of 2013 – addition deemed to have come into operation on 29 February 2012.]
(6) This section does not apply to any asset held by an insurer if the asset is administered by a Category III Financial Services Provider and that asset is held by that insurer solely for the purpose of providing a linked policy as de ned in the Long-term Insurance Act.
[Sub-s. (6) substituted by s. 78 (1) (e) of Act 31 of 2013 (substitution deemed to have come into operation on 29 February 2012) and by s. 78 (1) (f) of Act 31 of 2013 – date of commencement: 12 December 2013.]
[S. 29B inserted by s. 63 (1) of Act 22 of 2012 – date of commencement deemed to have been 29 February 2012.]
30 Public bene t organisations
(1) For the purposes of this Act—
‘public bene t activity’ means—
(a) any activity listed in Part I of the Ninth Schedule; and (b) any other activity* determined by the Minister
from time to time by notice in the Gazette to be of a benevolent nature, having regard to the needs, interests and well-being of the general public;
[De nition of ‘public bene t activity’ substituted by s. 22 (a) of Act 30 of 2002.]
‘public bene t organisation’ means any organisa- tion—
(a) which is—
(i) a non-pro t company as de ned in section 1 of
the Companies Act or a trust or an association of persons that has been incorporated, formed or established in the Republic; or
[Sub-para. (i) substituted by s. 41 (1) (a) of Act 17 of 2009, by s. 53 (1) (a) of Act 7 of 2010 and by s. 79 of Act 31 of 2013 – date of commencement: 12 December 2013.]
(ii) any branch within the Republic of any company, association or trust incorporated, formed or established in any country other than the Republic that is exempt from tax on income in that other country;
[Sub-para. (ii) substituted by s. 25 (1) (a) of Act 8 of 2007 and by s. 41 of Act 60 of 2008.]
[Para. (a) substituted by s. 24 (1) (a) of Act 20 of 2006.] (b) of which the sole or principal object is carrying on
one or more public bene t activities, where—
(i) all such activities are carried on in a non-pro t manner and with an altruistic or philanthropic
intent;
(ii) no such activity is intended to directly or
indirectly promote the economic self-interest of any duciary or employee of the organisation, otherwise than by way of reasonable remuneration payable to that duciary or employee; and
(iii) . . .
[Sub-para. (iii) substituted by s. 45 (1) of Act 45 of 2003 and deleted by s. 22 (a) of Act 3 of 2008.]
[Para. (b) amended by s. 24 (1) (b) of Act 20 of 2006.] (c) where—
(i) each such activity carried on by that organisation is for the bene t of, or is widely accessible to, the general public at large, including any sector thereof (other than small and exclusive groups).
(ii) and (iii) . . .
[Sub-paras. (ii) and (iii) deleted by s. 24 (1) (c) of Act 20 of 2006.]
[De nition of ‘public bene t organisation’ substituted by s. 22 (b) of Act 30 of 2002.]
(2) Any activity determined by the Minister in terms of paragraph (b) of the de nition of ‘public bene t activity’ in subsection (1) or any conditions prescribed by the Minister in terms of subsection (3) (a) must be tabled in Parliament within a period of 12 months after the date of publication by the Minister of that activity or those conditions in the Gazette, for incorporation into this Act.
[Sub-s. (2) substituted by s. 22 (c) of Act 30 of 2002.] (3) The Commissioner shall, for the purposes of this
Act, approve a public bene t organisation which—
(a) complies with such conditions as the Minister may prescribe by way of regulation to ensure that the
* See GN 696 in GG 31180 of 4 July 2008.
222 SAIT CompendIum oF TAx LegISLATIon VoLume 1